Government Targets Account Ownership To Increase 2 Percent Every Year

Coordinating Minister for Economic Affairs Airlangga Hartarto said that the target for account ownership will increase by two percent every year so that by 2024 it will be 80 percent and by 2029 it will reach 90 percent.

"The target of account ownership in 2025 is estimated at 82 percent, we increase this by 2 percent per year, so that in 2026 it will be 84 percent then until 2029 by 90 percent," he said at the Coordination Meeting of the National Board of Inclusive Finance (DNKI) in Jakarta, Friday, March 23, 2024.

The financial inclusion in Indonesia, both in terms of ownership and use, has continued to increase in the last ten years.

This is reflected in account ownership increasing from 36.1 percent in 2014 to 65.4 percent in 2021 and increasing to 73.6 percent in 2023.

"We also need to encourage the realization of account ownership team in various groups of people, adults who do not yet have an account in formal institutions, this is 23.7 percent," said Airlangga.

According to Airlangga, there are three main indicators of financial inclusion obtained as measured from access range indicators, the use of financial products, the quality in general which has also increased significantly.

For information, the level of financial inclusion continues to increase every year. In 2020 it reached 81.4 percent, in 2021 it increased to 83.6 percent, in 2022 it increased to 85.1 percent, and in 2023 it increased to 88.7 percent.

Airlangga detailed that the increase in financial inclusion in 2023, which was 88.7 percent, was driven through the KEJAR (One Account One Student) program which had reached 53.9 million accounts or an increase of 2.8 percent year on year (yoy).

Furthermore, it was driven by the ownership of electronic money which had reached 150.7 million accounts, an increase of 11.2 percent (yoy).

And driven by the opening of a bank account for Mekaar customers of 13.68 million accounts or an increase of 92 percent (yoy).

Then 30 million QRIS merchants, 1.11 million pre-employment card distributions and subsidized financing at 4.64 million People's Business Credit (KUR) debtors, and reach communities in rural areas 1.18 million good-selling agents and 932,000 digital financial services.

On the other hand, Airlangga assessed that there are still various challenges such as reducing the gap by increasing public literacy.

"We are still seeing some challenges, namely that it has been explained, there is a gap between the level of inclusion and literacy of 35.4 percent," he said.

Airlangga added that another challenge is disparity or differences or distance between regions and between socio-economic-based groups.

"Disparity at the level of inclusion and financial literacy between regions, between community social groups, and of course rural communities have not been fully served by formal financial institutions of 29.3 percent," he explained.

Therefore, Airlangga said that there is still a need for an increase in legal protection for consumers, as well as inclusive data and finance measurements in various community groups, including people with disabilities in disadvantaged areas and Indonesian migrant workers (PMI).

"Also need inclusive financial data for intervention groups such as people with disabilities in disadvantaged areas, and migrant workers, and institutional strengthening from DNKI and also accelerating regional financial access to the National Committee for Financial Literacy and Inclusion," he said.

In addition, Airlangga said, the government is preparing the RPP of this national financial inclusion and literacy committee as a mandate of the Financial Sector Development and Strengthening Law (UU P2SK).